Above the Fold

One Thing Russian Sanctions Are Unlikely to Affect

Much of the world has banded together against Russian President Vladimir Putin and his unprovoked invasion of Ukraine. In what’s been a sudden, violent and very fluid war, NATO (North Atlantic Treaty Organization), its allies, and other countries agreed to impose a myriad of financial, social and travel-related sanctions against Russia, its oligarchs and even Putin himself. And while these penalties and boycotts have already begun to shake the Russian economy, with the ruble tumbling and interest rates soaring to 20%, there’s one sector that has not only skirted sanctions, but also will continue to feed Putin’s war machine — energy. 

As one of the world’s biggest petro-energy producers, Russia continues to reap big rewards to power its military might … especially when oil and natural gas are trading at nosebleed levels as they are today. Energy exports represent more than half its foreign sales and the de facto communist nation is responsible for 40% of Europe’s natural gas. Ironically, if NATO allies were to try and cut off Russia’s oil exports, it would both send prices soaring (beyond the 40% gained in just a few months) and likely create a critical supply crunch. This, in turn, would fuel even deeper global inflation and endanger the fragile economic recoveries of dozens of countries, including America. Right now, Russian sanctions have exemptions that allow for certain energy and commodity trade, and those are likely to remain in place as the world simply cannot handle a marketplace without these critical Russian exports.

Three Things 

1. America Invests in Better Batteries – Most batteries are produced outside America’s borders, mainly in Asia. But as competition builds and the threat of trade logistics becomes more apparent, the U.S. Government, alongside private investors, is pumping money into new startups like Ion Storage. Ion, initially funded by a federal grant, aims to develop and manufacture faster-charging, nonflammable batteries domestically. Other domestic companies, some backed by automakers, are joining the movement as well.
2. Goodbye Galaxy Note – Samsung is officially dropping its popular (and sometimes contentious) Galaxy Note brand. Launched 10 years ago, the Note series of larger-screen phones made waves in a sea of smaller devices. But as Apple and other competitors offered larger screen options, the Note fell in popularity. There hasn’t been a new Note phone released since 2020 but Samsung will keep its popular stylus and dub the new replacement series “Galaxy Ultra.”
3. “Smart” Money Betting on Further Gains in Crude – Investors have been piling billions into commodity funds that mimic the movements of oil and natural gas. The Wall Street Journal reported that traders are also buying energy-producing companies, as well as out-of-the-money (above $100) call options on oil futures. Call options give the owner the right to purchase oil at a set price by a certain time. With oil near $100, the purchaser of a $110 call option believes oil prices may rise to that level. The Commodity Futures Trading Commission also reported that bullish to bearish trades on oil reached a 15-to-1 ratio, the highest since mid-2021. 

Did You Know? 

When Did Mardi Gras Arrive in America?

Mardi Gras and Carnival in Brazil are essentially the same, pre-Lenten celebrations. The festivals culminate on Fat Tuesday (today), which was allegedly given its name as revelers used the day to squeeze in last-minute pleasures like rich foods and alcohol just before the 40-day season of prayer and abstention. Mardi Gras is believed to have hit American shores for the first time on March 3, 1699, around the Mobile, Alabama, area. When he realized the date, French-Canadian explorer Pierre Le Moyne d’Iberville named the area Pointe du Mardi Gras and threw a small party.